• International Journal of Control, Automation, and Systems
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• v.6 no.5
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• pp.627-638
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• 2008

With the shift of the electric power industry from a regulated monopoly structure to a competitive market environment, the focus of the transmission expansion planning has been moving from reliability-driven transmission expansion to market-based transmission expansion. In market-based transmission expansion, however, a growing demand for electricity, an increasing number of transmission bottlenecks, and the falling levels of transmission investment have created the need for an incentive to motivate investors. The expectation of profit serves as a motivational factor for market participants to invest in transmission expansion in a competitive market. To promote investment in transmission expansion, there is an increasing need for a systematic method to examine transmission expansion for investment incentives from multiple perspectives. In this paper, the transmission expansion problem in a competitive market environment is formulated from ISO and investors' perspectives. The proposed method uses parametric analysis to analyze benefits for investors to identify the most profitable location and amount for transmission addition. Numerical results are presented to demonstrate the effectiveness of the proposed method.

• Journal of Korean Institute of Industrial Engineers
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• v.22 no.2
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• pp.189-207
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• 1996

In this paper, a market share competition model for two firms with asymmetric conditions is considered with. In the model, the asymmetry between two firms is given by the difference of market shares In the existing market and the change of market share is supposed to be occurred only through pioneering a new market. Since the timing decision of market pioneering is based on the continuous time domain, a super game structure which has infinitely many numbers of subgames is employed for the modeling. In the course of equilibrium finding, we show that there exists no subgame-perfect pure strategy equilibrium In this game. So, we apply a mixed strategy concept and find a unique subgame-perfect equilibrium behavior strategy. As a result of equilibrium analysis, we know that the relative sizes of pioneering Incentives between two firms are varying with parameter conditions. However, the global speed of market pioneering is proven to be independent with the level of asymmetry between two firms.

• Journal of Environmental Policy
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• v.13 no.3
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• pp.75-107
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• 2014

For the purpose of carbon mitigation, Korea needs to introduce stronger market-based economic incentives to promote environmentally-friendly behaviors of consumers. In particular, the government could consider introducing tax benefits on income taxation for green consumption, as well as public education and campaign, to stimulate environmentally-friendly consumption behaviors. In this respect, using an analysis of Input-Output and Household Income and Expenditure Survey in Korea, this paper designs four major scenarios related to income tax benefits for green consumption, and then explores the economy-wide effects of those proposed policies.

• Journal of Korea Technology Innovation Society
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• v.14 no.spc
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• pp.1256-1284
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• 2011

Although a existing consumer market have been studied in depth in the new technology product market, the market research on the overall level of value chain to consist of consumers, distributors, and manufacturers is weak. Therefore, in this paper consumers' purchase of new technology products were simulated and analyzed by a consumer selection model and a multi-agent model, which consist of consumers, distributors and manufacturers. Our research was focused on customer preference study in new technology product market by using conjoint analysis and discrete choice model. And changes in consumer behavior based on adoption of new technologies and offering of incentives were analyzed by ABM (Agent-based Model). In conclusion, the market share of technology products was risen when provision of incentives corresponding to inventory level and demand for new technology products occurred at the same time.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.58 no.6
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• pp.1087-1092
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• 2009

This paper presents a method for improvement of capacity payment in CBP(cost based pool) market. Capacity payments have been used as common mechanisms in various pools for compensating generators recognized to serve a for reliability purpose. Ideal pricing for capacity reserves by definition achieves a balance between economic efficiency and investment incentives. That is, prices must be kept close to costs, but not so low as to discourage investment. However, the price set is not easy. This paper concludes with market design recommendations that apply fuzzy theory for improvement of capacity payment. Following this model, market participants decided on their own based on their forecast to the market demand and the payment for it.

• Proceedings of the KIEE Conference
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• 2006.11a
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• pp.43-45
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• 2006

Because Cost Based Pool(CBP) has any locational signals for electricity price, there are any locational incentives for construction of new power plant high efficient. in case of Korean electricity power market, this incentives are very important to reduce loss and congestion. This Paper represent the effect of MLF(Marginal Loss Factor) as locational price signal in short period. we investigate mathematically loss reduced effect of MLF and prove to reduce transmission loss using 3bus test system.

• Environmental and Resource Economics Review
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• v.23 no.4
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• pp.617-641
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• 2014

Korean electricity market is a Cost-Based Pool (CBP) designed to minimize electricity production cost through cost by providing cost reduction incentives to generators. Generation companies have shown diverse efforts to reduce costs in CBP market such as procuring low-price fuels, installing high efficiency gas turbine and constructing power plants near the heavy-load site. Recently, as a way to improve CBP market, a proposal to exclude no-load cost from System Marginal Price (SMP) and to compensate generators ex post was suggested to Korea Power Exchange. This study analyzes the impact of excluding no-load cost from SMP on the cost reduction incentive of generators. We found that excluding no-load cost from SMP enhances the likelihood of decreasing the cost reduction incentives of LNG combined-cycle generators lying on the price-setting range.

• Journal of Distribution Science
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• v.17 no.9
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• pp.117-125
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• 2019

Purpose - We investigate how to increase consumer incentives to buy public offering funds, resulting in activating the public offering fund market. In particular, this study aims to find ways to expand diversity and to improve efficiency of public offering fund. The public fund market of Korea has been stagnant in recent years. However, the public offering fund market plays a very significant role in terms of consumer welfare. Since only a few wealthy investors can participate in the private equity market, the stagnation in the public offering fund market usually reduces the opportunity of consumer's buying funds thus ultimately affecting their future wealth. Research design, data, and methodology - To attain our purpose, the 'factor-based portfolio strategy' has been considered. It is an alternative portfolio strategy, which composites the advantages of the passive management and active management. For our empirical anaylsis, we used global stock distribution market data over the period of 1991 and 2016. Then we constructed portfolios based on firm-size, firm-value, and momentum. Finally, a regression model was set, then hypotheses were tested, analyzing the performances. Results - First, among the 15 factor-based portfolios of global, Europe, Asia-Pacific(ex Japan), US and Japan, in eight portfolios, positive excess returns are observed at 5% significance level. Further, there is another portfolio with positive excess return at 10% significance level. Second, most of the portfolios with significant excess performance show positive relationship with the market portfolio. However, the firm-value based portfolio in Asia-Pacific region shows no relationship, and the firm-value based portfolio in US shows negative relationship. Third, we confirmed that the two firm-value factor portfolios in Asia-Pacific region and US, not having positive relationship with market portfolio, provide significant excess returns. Conclusions - In this paper, we provide empirical evidences supporting that the factor-based portfolios expand the diversity of funds and improve the efficiency of investment performance. However, there is no guarantee that the efficiency will continue in the future. In addition, various constraints and costs must be considered. Nevertheless, our novel findings in the advanced financial market such as US and Asia-Pacific are very interesting and offers important implications.

• Environmental and Resource Economics Review
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• v.11 no.1
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• pp.31-55
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• 2002

When landowners have private information about land value, compensation based on conservation value at the time of regulatory takings of land is impractical even though it generates an efficient outcome. No compensation rule to a landowner not only yields an inefficient outcome but also provides an ex ante pervasive incentive for the landowner to invest in lowering conservation value. An alternative rule of compensation based on the market value of the land provides ex ante incentives for landowner either to reduce conservation value or to increase it. Under the market value compensation rule, placing the burden of proof on landowner gives higher probability of conservation than placing it on regulator. Whether it is better to allure landowners to conserve by paying compensation with market value and placing the burden of proof on landowner through changes in the regulatory regime however depends on the magnitude of inefficiency, equity consideration and dynamic nature of property rights on environmental goods.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.811-822
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• 2020

This study investigates the gender differences in determinants of customers' satisfaction when purchasing online beauty and cosmetics products in Vietnamese market. To do so, we construct a data set via online survey of 419 Vietnamese customers including both males and females, and examine such sample using t-tests and multiple regressions. Our regression model is constructed based on our five-construct model including online shopping experience, customer service, external incentives, security and privacy, and personal characteristics. The t-tests results reveal that the mean difference of customer satisfaction (negative coefficient) between the two groups of customers (females and males) is statistically significant. This suggests that the purchasing satisfaction of male customers is significantly higher than that of their female counterparts. Similarly, we also find that male customers are more satisfied with their online shopping experience, customer service and external incentives offered by the online sellers than female peers. Furthermore, regression results for full sample show that, on average, the online shopping experience, customer service and external incentives are significantly and positively related to customer satisfaction. Yet, such positive effect of customer service on customer satisfaction is more likely for males while females' satisfaction is more positively influenced by security and privacy.